The Valencia income tax cut is now law: from the 2026 tax return the regional scale (the part of IRPF that the region sets) has slightly lower rates, and in 2027 it drops again. IRPF is the income tax on the Renta return. Law 5/2026 of the Generalitat appeared in the Valencian official gazette (DOGV) on 10 August, came into force the next day and the BOE published it on 17 September. The cut affects people who are tax residents in the Valencian Community.
What changes for you today
You do not have to file or change anything today. The 2025 return, the one filed between April and June 2026, was calculated with the old scale. The new one will apply to the 2026 return, filed in 2027. The full brackets and examples in euros are in the guide regional IRPF scale in the Valencian Community 2026 and 2027. The general rules of the return are in the guide to the Renta for foreign residents.
What happened
Les Corts Valencianes (the regional parliament) passed Law 5/2026 of 31 July, which gathers the year's tax and administrative measures. It was published in the DOGV on 10 August 2026 and came into force on 11 August. The BOE carried it on 17 September.
Within that package, one part changes the Valencian law on the regional IRPF (Law 13/1997): a new scale for 2026, in article 18, and another for 2027, in the third transitional provision. The law brings many more measures, on fees, housing and other matters; here only the IRPF part. It also changes gifts and inheritances: gift of money from parents to children in the Valencian Community.
How it works now
- Until the 2025 return: the Valencian scale runs from 9% on the first €12,000 of base up to 29.5% above €200,000. These are the figures in the AEAT 2025 tax return manual (the Tax Agency).
- Two parts: IRPF has a part for the State and another for your region. This law changes only the regional one.
- Who applies it: anyone who is a tax resident in the Valencian Community, in general whoever spends more days of the year there (tax residence and the 183 days).
What changes
Two steps, one per year:
- 2026 return: the first bracket falls from 9% to 8.8% and the last from 29.5% to 29.35%. The other brackets fall between 0.15 and 0.6 points.
- From 2027: each rate falls another 0.1 points. The first bracket ends at 8.7% and the last at 29.25%.
- The bracket limits do not change: they are the same, from €12,000 up to more than €200,000.
- In euros, not much: our own calculation, for the regional part only and with no deductions, for a person under 65 with no children. With a general taxable base of €25,000 (your income from work, pensions or rent, after reductions) it is about €54 less a year in 2026 and about €73 in 2027. With €40,000, about €122 and about €156.
- Who does not notice: anyone living in another region, because each has its own scale.
What happens next
- The 2026 scale is used in the 2026 return, filed in 2027. The AEAT will announce the dates of that campaign.
- The 2027 scale is used in the 2027 return, filed in 2028.
- Regions can change their scale with later laws. If it changes, we will update the guide.
What you can do
- Check whether in 2026 you will be a tax resident in the Valencian Community.
- To estimate your 2026 Renta, use the 2026 scale in the guide to the Valencian scale, not the old one.
- According to the text we reviewed, the cut needs no separate procedure: it is part of how the tax is calculated.
Official source: Law 5/2026 of the Generalitat Valenciana (BOE-A-2026-19331), article 18 and third transitional provision.
Informational only; check the official source and a professional for your specific case.